How would you characterize an economy utilizing its resources to maximize production?

In an economy that is utilizing its resources to maximize production, the term "efficient" aptly describes the situation. Efficiency in economic terms refers to the optimal use of resources to produce goods and services in a way that maximizes output without wasting resources. When an economy operates efficiently, it means that all available resources—such as labor, capital, and technology—are being employed to their fullest potential.

This maximization of production suggests that the economy is achieving the highest possible output with the inputs available. As a result, the society's needs and wants are being satisfied effectively without leaving any potential output unachieved. Factors such as employment levels, technological advancements, and resource allocation contribute to this efficiency, indicating a healthy, well-functioning economy where productivity is at its peak.

The alternative choices, while related to resource use, do not reflect the idea of maximizing production. For example, an economy that is inefficient or underutilized would imply that not all resources are being employed effectively, leading to lower production outputs than possible. Additionally, an unstable economy typically references fluctuations or uncertainty rather than the optimal use of resources. Therefore, "efficient" captures the essence of an economy effectively maximizing its production potential.